Updates About Jobs

The Michigan Supreme Court issued an order clarifying the implementation of the state’s minimum wage increase plan, confirming that the Department of Labor and Economic Opportunity and the Department of Treasury’s calculations were accurate. The court ruled that inflation adjustments should be calculated starting from January 1, 2019, through July 31, 2024, resulting in a gradual increase in the minimum wage to $12.48 in 2025 and up to $14.97 by 2028.

The court also addressed a missed phase-in percentage for tipped wages, clarifying that tipped workers’ wages would reach 100% of the regular minimum wage by 2030, correcting their initial projection of 2029. Justice Elizabeth Welch provided a concurring opinion, while Justices Brian Zahra and David Viviano dissented. Treasury must submit the finalized wage figures by November 1, 2024.

Governor Gretchen Whitmer announced ambitious housing and energy initiatives at the Mackinac Policy Conference this year, increasing Michigan’s five-year housing production goal by 53% and securing federal funds to lower energy costs for 28,000 low-income households. The initiatives are part of the MI Healthy Climate Plan that aims to build 115,000 housing units and incorporate measures to drive energy efficiency, with the ultimate goals of making housing and utilities more affordable for Michiganders.

The Michigan State Housing Development Authority (MSHDA) has already invested $1.23 billion to build and restore homes, creating 20,000 new jobs. The Governor also proclaimed that the state has received $367 million in federal funding to support the Michigan Solar for All initiative and the Home Energy Rebate programs. The Michigan Department of Environment, Great Lakes, and Energy (EGLE) will head the project to cut utility costs, install solar equipment on roofs, and decrease the costs of energy-efficient appliances. Together, these programs aim to reduce energy costs and promote renewable energy for low-income Michigan homes.

In April, unemployment rates fell in 15 of Michigan’s 17 labor market areas, according to the Department of Technology, Management and Budget. Prior to this spring, all 17 areas experienced a year-over-year increase in unemployment, with a median rise of 0.5%. However, beginning in April there was a median decrease in unemployment at a rate of 0.2%, with rates ranging from 3% to 6.8%. The largest reduction was in Northeast Lower Michigan, while Flint and Muskegon saw no change.

Over the past year, employment rose in 14 markets, with a median increase of 1.2%, and Niles showing the most growth. Unemployment rate reductions were noted in 68 of 83 counties, with Livingston County having the lowest rate of unemployment at 2.5% and Mackinac County with the highest at 14.3%. The Upper Peninsula saw the biggest decrease in labor force levels at 1.1%, but there was a median decrease of 0.7% across the state. The sectors with the most added employment opportunities were professional and business service industries and construction.